Equity Profile

ZS

Zscaler, Inc.

Information TechnologySystems Software$21.1B

May26Tue

Post-Earnings Recap

ReportedQ3-2026After Close4:05 PM EDT

Zscaler Beats on EPS, Stock Up 0.0%

Metric	Actual	Expected	Surprise
EPS	$1.08	$1.01	+3018.92%
Revenue	—	$836M	—

management commentary, guidance changes, and full analysis available with Pro.

Zscaler Beats on EPS, Stock Up 0.0%

Key Numbers

Metric	Actual	Expected	Surprise
EPS	$1.08	$1.01	+3018.92%
Revenue	—	$836M	—

Management Commentary

Tone: Unknown

No transcript is on record for this earnings call, so the analysis is based solely on numerical results.

What It Means

Zscaler reported better-than-expected earnings per share, significantly exceeding analyst expectations. However, the stock reaction was flat, indicating that investors may be cautious or awaiting more information. The lack of revenue details and management commentary could also contribute to the muted stock movement.

Company Snapshot

Zscaler, Inc. is a leading provider of cloud-based security solutions, helping organizations secure their internet traffic and protect sensitive data....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of profitability and will show how well the company is managing costs and generating income.

$1.01

Revenue

Total revenue reflects the company's ability to grow its customer base and expand its market share, which is vital in the competitive cybersecurity landscape.

$836M

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Zscaler, Inc. is a leading provider of cloud-based security solutions, helping organizations secure their internet traffic and protect sensitive data. As a part of the Information Technology sector, Zscaler plays a crucial role in the growing demand for cybersecurity, especially as more businesses move to cloud environments.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+1848.77%

Avg Stock Reaction

+1.13%

Last Quarter Recap

In Q2-2026, Zscaler reported an impressive earnings surprise of over 2248%, with EPS coming in at $1.01. This strong performance led to a 7.49% increase in stock price the following day.

Management Promises & Guidance

Continued focus on expanding cloud security offerings.
Commitment to improving customer satisfaction and retention.
Plans to invest in research and development for innovative security solutions.

Expectations

Wall Street Expectations

Analysts are generally optimistic about Zscaler's upcoming earnings, expecting solid EPS and revenue growth. The company has consistently beaten earnings estimates in the past, which raises expectations for this quarter.

Bull Case

If Zscaler can maintain its momentum and deliver strong results, it could further solidify its position as a leader in the cybersecurity space, attracting more investors.

Bear Case

Conversely, if Zscaler fails to meet expectations or provides weak guidance, it could lead to a significant sell-off, especially given the high valuation.

Key Metrics to Watch

EPS

$1.01

Earnings per share is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue

$836M

Total revenue reflects the company's ability to grow its customer base and expand its market share, which is vital in the competitive cybersecurity landscape.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zscaler's EPS exceed $1.01, confirming its strong profitability?

A beat on EPS would reinforce investor confidence and could lead to a positive stock reaction.

What guidance will management provide for future revenue growth?

Investors will closely watch for any signs of slowing growth or challenges in the market, which could impact stock performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Zscaler's ability to leverage its cloud-based solutions for sustained growth, especially given the increasing demand for cybersecurity.

Supporting Evidence

Zscaler has consistently beaten EPS estimates, indicating strong operational performance.

The options market is pricing in a larger move than historical averages, suggesting heightened expectations.

Recent trends in cybersecurity spending could lead to stronger-than-expected revenue growth.

Key Risk

If Zscaler's revenue growth comes in below $836M, it could challenge the bullish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter, the focus is on Zscaler's ability to sustain its impressive growth trajectory in a competitive market.

Bull Confirmed If

Delivering an EPS of $1.01 or higher while maintaining strong revenue growth.

Bear Confirmed If

Falling short of the $1.01 EPS target or providing weak future guidance.

Pre-Earnings Positioning

Options Market

Implied Move

±14.2%

Historical Avg

±2.5%

Pricing rich

The options market is pricing in a significant potential move, indicating that investors are anticipating volatility around the earnings announcement.

Options are pricing ±14.2% while ZS has averaged ±2.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.2%

30d HV

56.4%

Calls (688K)P/C Ratio: 1.06Puts (454K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zscaler beats expectations, history suggests a potential stock increase of around 0.39%, confirming its growth narrative.

In-Line / Cautious

If results are in line but management is cautious, the stock may react neutrally, reflecting uncertainty in future growth.

Miss

A miss could lead to a decline, with historical patterns suggesting an average drop of around 2.89%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer acquisition and retention rates.
2Any commentary on competitive pressures in the cybersecurity market.
3Insights into product development and innovation strategies.
4Management's outlook on macroeconomic factors affecting business.
5Details on any new partnerships or collaborations.

See the full picture

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Company Snapshot

Zscaler, Inc. is a leading provider of cloud-based security solutions, helping organizations secure their internet traffic and protect sensitive data....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of profitability and will show how well the company is managing costs and generating income.

$1.01

Revenue

Total revenue reflects the company's ability to grow its customer base and expand its market share, which is vital in the competitive cybersecurity landscape.

$836M

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+1848.77%

Avg Stock Reaction

+1.13%

Last Quarter Recap

In Q2-2026, Zscaler reported an impressive earnings surprise of over 2248%, with EPS coming in at $1.01. This strong performance led to a 7.49% increase in stock price the following day.

Management Promises & Guidance

Continued focus on expanding cloud security offerings.
Commitment to improving customer satisfaction and retention.
Plans to invest in research and development for innovative security solutions.

Expectations

Wall Street Expectations

Bull Case

If Zscaler can maintain its momentum and deliver strong results, it could further solidify its position as a leader in the cybersecurity space, attracting more investors.

Bear Case

Conversely, if Zscaler fails to meet expectations or provides weak guidance, it could lead to a significant sell-off, especially given the high valuation.

Key Metrics to Watch

EPS

$1.01

Earnings per share is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue

$836M

Total revenue reflects the company's ability to grow its customer base and expand its market share, which is vital in the competitive cybersecurity landscape.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zscaler's EPS exceed $1.01, confirming its strong profitability?

A beat on EPS would reinforce investor confidence and could lead to a positive stock reaction.

What guidance will management provide for future revenue growth?

Investors will closely watch for any signs of slowing growth or challenges in the market, which could impact stock performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Zscaler's ability to leverage its cloud-based solutions for sustained growth, especially given the increasing demand for cybersecurity.

Supporting Evidence

Zscaler has consistently beaten EPS estimates, indicating strong operational performance.

The options market is pricing in a larger move than historical averages, suggesting heightened expectations.

Recent trends in cybersecurity spending could lead to stronger-than-expected revenue growth.

Key Risk

If Zscaler's revenue growth comes in below $836M, it could challenge the bullish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter, the focus is on Zscaler's ability to sustain its impressive growth trajectory in a competitive market.

Bull Confirmed If

Delivering an EPS of $1.01 or higher while maintaining strong revenue growth.

Bear Confirmed If

Falling short of the $1.01 EPS target or providing weak future guidance.

Pre-Earnings Positioning

Options Market

Implied Move

±14.2%

Historical Avg

±2.5%

Pricing rich

The options market is pricing in a significant potential move, indicating that investors are anticipating volatility around the earnings announcement.

Options are pricing ±14.2% while ZS has averaged ±2.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.2%

30d HV

56.4%

Calls (688K)P/C Ratio: 1.06Puts (454K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zscaler beats expectations, history suggests a potential stock increase of around 0.39%, confirming its growth narrative.

In-Line / Cautious

If results are in line but management is cautious, the stock may react neutrally, reflecting uncertainty in future growth.

Miss

A miss could lead to a decline, with historical patterns suggesting an average drop of around 2.89%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer acquisition and retention rates.
2Any commentary on competitive pressures in the cybersecurity market.
3Insights into product development and innovation strategies.
4Management's outlook on macroeconomic factors affecting business.
5Details on any new partnerships or collaborations.